The price is currently testing the upper limit of its medium term bullish channel at 108.80 and seems to initiate a decline. However a break through these levels will free up significant potential and initiate a bullish trend more violent.
Technical indicators provide buy-signals and are approaching the overbuy zone supporting the assumptions of a decline. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events, the market will indicate a bullish opportunity as soon as the spot rate has broken its resistance at 108.80 with the 1st objective of 109.30, then 109.50. A break through 108.60 will alter this scenario.
